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Highlights:
- UK housing market sees a surge, with 306,000 homes worth £113 billion under sale.
- Zoopla forecasts a 2% house price increase for 2024 amid strong sales activity.
- Speculation on ending stamp duty exemptions could hinder first-time buyers, warns Zoopla.
The UK’s housing market is experiencing its most active period in four years, according to recent data from property portal Zoopla. With rising income levels and a fall in mortgage rates, sales activity has surged, with 306,000 homes collectively valued at £113 billion currently in the process of being sold. This 30% increase compared to last year marks the highest level of new sales activity since autumn 2020.
In terms of pricing, the increase remains modest, with house prices rising only 1% over the year to October. This slower pace reflects affordability constraints and the larger range of choices available to buyers, both of which continue to moderate overall price growth.
Zoopla described the 2024 market as on track for a “bumper year,” forecasting a 2% annual increase in house prices and 1.1 million completed transactions by the end of the year. First-time buyers are largely credited for driving this recovery, expected to account for 36% of all sales this year as they seize the opportunity afforded by improved mortgage conditions and relatively stable prices.
However, looming changes in government policy could disrupt this momentum. Zoopla cautioned that potential alterations to stamp duty relief in the upcoming Budget could pose significant challenges for first-time buyers. Current exemptions, which set the stamp duty threshold at £425,000, are reportedly under review. Should the threshold be lowered, Zoopla warns that buyers could face an additional £15,000 in costs, potentially discouraging those new to the property market who already navigate significant affordability issues.
“The housing market doesn’t need short-term policy tweaks from the Budget,” Zoopla’s executive director Richard Donnell commented. Instead, he urged a focus on “providing the financial support and investment needed to help build the homes the nation needs for buyers and renters.”
This call for a more strategic, long-term approach comes as the UK grapples with a housing shortage, with many renters and prospective homeowners priced out of the market due to a lack of affordable housing.
